The head of the iGroup Apple recently completed the largest sale of Apple shares in two years. What could this mean for Apple investors?
• Apple CEO separates from Apple share package
• Insider selling occurs after Apple shares have pulled back in the last 3 months
• Other top managers are also selling shares
Apple CEO Tim Cook recently sold Apple shares in a big way. According to a filing with the US Securities and Exchange Commission (SEC), the company leader sold 511,000 shares worth around $87.8 million. After taxes, Cook made a whopping $41.5 million from the sale.
It is the Apple boss’s largest share sale in around two years. In August 2021, the top manager sold an even larger share package, which brought him a whopping $355 million. Despite the sales, Cook still owns about 3.3 million Apple shares, worth a total of about $565 million, SEC filings show.
Of course, when a CEO sells masses of shares in his own company, this is always of interest to investors. Because no one knows the company as well as the boss; after all, he has insight into all company processes and has knowledge that is not available to the general public. However, such insider sales are only legal if the top manager does not have stock market-relevant knowledge that is not yet available to the public.
However, the point at which a CEO decides to sell company shares is of particular interest. It is not atypical for company leaders to sell shares when they have already done particularly well. Conversely, top managers often make use of insider buying when they believe the shares are undervalued. In this way, trust in your own company and confidence in the future are emphasized to the outside world.
Apple shares with losses in the last three months
At Apple, tech visionary Cook did not choose the timing of the sale quite optimally in terms of the valuation of Apple shares. The iGroup’s shares on the NASDAQ have gained an impressive 34.62 percent since the beginning of the year, but in the last three months they have fallen again by 8.81 percent. The reason for this was concern that demand for smartphones was declining globally.
Despite his share sale, Cook remains an important shareholder in the iGroup. Despite the sale of the shares, his shareholding, namely 0.2 percent of all outstanding securities, has not changed in the last week, as the successor to Apple icon Steve Jobs received an annual share package in the same amount as part of his company compensation Forbes reports. This still represents a considerable amount, after it was cut by 40 percent this year at the request of the Apple CEO.
Incidentally, the Apple boss is not the only top manager who took advantage of the opportunity to cash in on Apple shares. As can be seen from publicly available SEC filings, the managers Deirdre O’Brien and Katherine Adams also sold their securities and received eleven million US dollars each.
The price of Apple shares remained unaffected by the latest insider sellers. On the day of the sale, the share price left NASDAQ trading 0.73 percent higher at $173.66. In addition, the iGroup remains the most valuable company in the world. Accordingly, Apple investors should not worry about the future of the iGroup given the Apple boss’s recent share sale.
Editorial team finanzen.net
Selected leverage products on Apple
With knock-outs, speculative investors can participate disproportionately in price movements. Simply select the lever you want and we will show you suitable open-end products on Apple
The leverage must be between 2 and 20
Advertising